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HB1955 • 2026

RELATING TO PROCUREMENT.

RELATING TO PROCUREMENT.

Active

The official status still shows this bill as active or still awaiting another formal step.

Sponsor
NAKAMURA, EVSLIN, MORIKAWA
Last action
2026-01-28
Official status
Referred to FIN, referral sheet 3
Effective date
Not listed

Plain English Breakdown

The official source material does not provide details about the removal of paperwork or procedural steps for contracts below the new threshold, nor does it specify if there are any exceptions for certain types of contracts.

Increasing Vendor Compliance Threshold

This bill raises the contract award value that requires vendors to prove they follow state laws from $2,500 to $6,000.

What This Bill Does

  • Increases the amount a contract must be worth for vendors to need proof of compliance with state laws from $2,500 to $6,000.

Who It Names or Affects

  • State agencies that award contracts
  • Vendors who receive state contracts

Terms To Know

Procurement
The process of buying goods or services for the government.
Vendor Compliance
Proof that a company follows all laws when doing business with the state.

Limits and Unknowns

  • Does not specify what happens to contracts between $2,500 and $6,000.
  • The bill does not mention how it will be enforced or monitored.
  • It is unclear if there are any exceptions for certain types of contracts.

Bill History

  1. 2026-01-28 H

    Referred to FIN, referral sheet 3

  2. 2026-01-26 H

    Introduced and Pass First Reading.

  3. 2026-01-23 H

    Pending introduction.

Official Summary Text

RELATING TO PROCUREMENT.
Procurement; Public Contracts; Small Purchases; Vendor Compliance
Increases the contract award value that triggers required proof of vendor compliance from $2,500 to $6,000.

Current Bill Text

Read the full stored bill text 
HB1955

HOUSE OF REPRESENTATIVES

H.B. NO.

1955

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

A BILL FOR AN ACT

relating
to procurement
.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

����
SECTION
1.
�
The legislature finds that under
existing procurement law, any offeror awarded a state contract of $2,500 or
more must demonstrate compliance with various state laws governing businesses,
including tax and employment laws.
�
While
ensuring legal compliance is important to uphold fairness and accountability in
public contracting, the existing $2,500 threshold triggering this requirement
is outdated and unduly low.
�
This
threshold, which has remained unchanged for many years, forces even very small
procurement awards to undergo the same compliance certification process as much
larger contracts.
�
The additional
paperwork and procedural hurdles for these minor contracts can deter potential
vendors, especially small local businesses and out-of-state or foreign
companies, from participating in state solicitations due to the time and
expense of obtaining required clearances relative to the contract size.

����
The
legislature further finds that raising this compliance threshold will modernize
Hawaii's procurement practices and improve government efficiency.
�
By increasing the dollar amount at which
formal vendor compliance verification is required, state agencies will be able
to expedite routine small purchases and reduce administrative burdens, freeing
up resources to focus on larger contracts and other priorities.

����
Therefore,
the purpose of this Act is to raise the contract award value that triggers
required proof of vendor compliance from $2,500 to $6,000.

����
SECTION
2
.
�
Section 103D-310, Hawaii Revised Statutes, is
amended by amending subsection (c) to read as follows:

����
"(c)
�
All offerors, upon award of contract, shall
comply with all laws governing entities doing business in the State, including
chapters 237, 383, 386, 392, and 393.
�

Offerors shall produce documents to the procuring officer to demonstrate
compliance with this subsection.
�
Any
offeror making a false affirmation or certification under this subsection shall
be suspended from further offerings or awards pursuant to section
103D-702.
�
The procuring officer shall
verify compliance with this subsection for all contracts awarded pursuant to
sections 103D-302, 103D-303, 103D-304, and 103D-306, and for contracts and
procurements of [
$2,500
]
$6,000
or more awarded pursuant to
section 103D-305; provided that the attorney general may waive the requirements
of this subsection for contracts for legal services if the attorney general
certifies in writing that comparable legal services are not available in [
this
]

the
State."

����
SECTION
3.
�
Statutory material to be repealed is
bracketed and stricken.
�
New statutory
material is underscored.

����
SECTION 4.
�
This Act shall take effect upon its approval.

INTRODUCED BY:

_____________________________

Report Title:

Procurement;
Public Contracts; Small Purchases; Vendor Compliance

Description:

Increases
the contract award value that triggers required proof of vendor compliance from
$2,500 to $6,000.

The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.